1- Suppose Apple plans to produce 20.0 million iPhones this year. The company expects to sell 20.1 million and add 100,000 to the inventories this its stores.

a- Suppose that at the end of the year, Apple has sold 19.9 million iPhones. What was Apple's planned investment? What was Apple's actual investment?

b- Now suppose that at the end of the year, Apple has sold 20.3 million iPhones. What was Apple's planned investment? What was apples actual investment?

2- Unemployed workers receive unemployment insurance payments from the government. Does the existence of unemployment insurance make it likely that consumption will fluctuate more or fluctuate less over the business cycle than it would in the absence of unemployment insurance? Briefly explain.